clubbing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 May 2011 Hello Experts,

Can you please solve a query example.

Details are as follows.

Q1)Gift from son to mother. - Rs 30. lacs
It is invested in Fixed Deposits.

Is the interest on the F.D.R above clubbed in the fathers income??

If the father gifts son 30 lac. son keeps it for few months then gifts it to his mother. then mother deposits in fdr? is income clubbed in fathers hand?

Q2)Gift from my father to my uncle's wife(chachi)( spouse of brother of my father)?? 30 lacs. same is deposited in fdr by aunty.

Whether such interest income is clubbed in Uncles income? Assuming aunty is independent assesee.She has worked for years as dept store manager.

U S Sharma

U S Sharma (Expert)
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16 May 2011 in all such cases the actual owner of the money is liable for income tax on the income earned with the money.

one more thing,

making so much inter-family cumbersome transactions would invite minimum scurtiny which may proceed with investigations.

Querist : Anonymous

Querist : Anonymous (Querist)

16 May 2011 Thank you.

But who is the actual owner of the money in above transactions??

minimum scrutiny or scrutiny?

Why scrutiny as the amounts are within definition of gifts to relative?Thus exempt.

U S Sharma

U S Sharma (Expert)
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16 May 2011 if 30 lacs moved to any person then this amount must have been accounted in any file as tax paid,

the person who has paid tax on such amount( the actual owner) is liable for clubbing and tax on next income of such gifts.

any tax return with tax free receipts above 25 lacs is taken for scurtiny,

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